Be Careful: Divorce Can Damage Your Credit Rating

If you are going through a divorce, or are thinking about filing for divorce, you may already be prepared to deal with increased stress in the weeks and months ahead. However, what a lot of people don’t realize is that divorce can cause serious credit rating problems even years down the road.

Beyond the obvious financial-related divorce issues such as alimony and child support, divorce can also affect your finances, and your financial status, in other ways. One of the most serious ways in which a complicated divorce can profoundly damage your financial status going forward is by indirectly impacting your credit history and your credit score.

Many divorces are thorny and hard to work out because the spouses’ financial affairs are convoluted and messy. As a result, it becomes difficult for the spouses to sort out exactly who is responsible for certain financial obligations. Here are some of the most common ways that your credit history and your credit score could get tied up in a divorce:

Joint Bank Accounts: Most married couples have joint bank accounts. Although this typically makes it easier for attorneys to determine what constitutes “marital property,” it can also cause problems when the spouses don’t take steps to close the account or make sure that only one spouse remains as an authorized user on the account after the divorce is finalized. Failure to take these steps can lead to serious credit problems for one or both spouses in the future.

Confusion about Obligations to Lenders: After the divorce is finalized, it is important for the exes to be fully aware of who is responsible for paying off certain lenders. Additionally, the spouses need to contact credit card providers, banks and anyone else to whom one or both spouses may have financial obligations going forward.

Bitter Ex-Spouse: Sometimes a particularly contentious divorce can result in one of the spouses feeling a sense of anger against the other. It is not uncommon for a bitter ex-spouse, or soon-to-be ex, to intentionally accrue significant debts prior to the official dissolution of the marriage as a way of destroying the other spouse’s credit rating. Although the angry spouse will also destroy their own credit rating, they may not be thinking clearly or they simply may not care.

Protect your credit rating and your credit history. Regardless of the nature of your divorce, it is important for you to have an experienced divorce and family law attorney on your side throughout the process. A qualified divorce lawyer can assist you with immediate concerns like asset division, alimony, child support and child custody, as well as long-term issues such as your individual and joint financial obligations going forward.

If you are considering filing for divorce, or if you have already started the process of getting divorced, the experienced NJ divorce attorneys at Graziano & Flynn, P.C. can provide you with experienced and skilled legal representation. Contact us today to discuss your case or schedule a consultation at our Cherry Hill office.

Mr. Graziano had my best interests in mind when he represented me. He is clearly knowledgeable and handled my divorce quickly and efficiently. I'd hire him if I ever found myself needing a divorce lawyer again. Nadia

★★★★★

Attorney Graziano is one of the brightest and most compassionate professionals which anyone could work with! He is a great advocate and is extremely knowledgable of the judicial system. He made a very unpleasant legal situation a pleasant journey, and he helped keep things in perspective and in a positive light. I fully recommend him without reservation! Danielle

★★★★★

Hiring the right attorney to represent your divorce case is one of the most important decisions you will ever make! I was fortunate enough to hire Ron to handle my case and had what I believe to be a favorable outcome. I based my opinion on achieving the goals we set in the beginning of the case and comparing my final outcomes to friends and colleagues that went through the process with other attorneys. Thank you Ron! Craig

★★★★★

It seemed like my case took forever but I trusted Ron Grazaino and listened to what he had to say. Mr Graziano said that the insurance company was not being fair and that we should go to trial. The trial was very nerve racking however he eased my mind and killed them with proof and knowledge. My outcome of my trial brought me to tears of joy. I could never imagine such a good outcome. Listen to him, have faith and you too will be impressed. Robin

★★★★★

Ron is an extremely trustworthy lawyer. Listen to what he says and have faith in him, you will be as impressed as I am! I couldn't have dreamed of a better outcome in my case. I wouldn't have wanted anyone else to represent me, I highly recommend him to anyone looking for an amazing lawyer!!His staff is amazing as well!! Gia

We serve clients throughout south New Jersey including those in the following localities: Camden County including Camden, Cherry Hill, Haddon Township, and Sicklerville; Atlantic County including Atlantic City and Mays Landing; Burlington County including Marlton, Mount Holly Township, and Mount Laurel Township; Cape May County including Cape May, Ocean City, and Wildwood; Cumberland County including Bridgeton and Vineland; Gloucester County including Deptford Township, Sewell, Williamstown, and Woodbury; Salem County including Pennsville Township and Salem; and the Philadelphia suburbs.